Question

o The function ) - 1300 represents the rate of flow of money in dollars per year. Assume a 5-year period at 8% compounded continuously. Find (a) the present value and the accumulated amount of money fow att OAP S ot S The present value is $( (Do not round until the final answer. Then round to the nearest cant as needed) (D) Set up the integral used to find the accumulated amount of money flow ott 5. Select the correct choice below and in any answer boxes within your choice OAA OSA asia 0 The accumulated amount of money flow is (Do not found until the final answer. Then found to the nearestent as needed)

Answer 1

Sol (a) The present value for continuous money flow ft), interest sate r=8%=0.08 for T=5 years p=st ft) ert at 15 10.08) at [Given fuas = 1300 do optim o B. P= sec (1zoo) e 46c2: is correct. 5. The present value S 1300 1300 e -0.087 It -0.08 t 75 -0.40 1300 (cool ] = 1300 l F -éo 5 10.08t -0.08) (+0.08) -0.4 1300 5357.2993 0.08 so the present value is $5357.30 Accumulated amount of money is just p multiplied by eft A= est . p = ert. Si f(t) et dt at (1300) e is cossect. Jos option oA. A = e Now A = (SS dt = 16250 (04-1) ~ 7992.1513 The accumulated amount of money flow at t=5 is $ 7992.15 0.08.15 0.08t eo.4 1300 e 0.4 -0.4 1300/1 e 0.08